The Equilibrium Level of Income Will Rise When

question 83

Multiple Choice

The equilibrium level of income will rise when:

• A)planned consumption spending is less than real GDP.
• B)taxes exceed saving.
• C)supply exceeds demand.
• D)planned inventory investment is negative.
• E)aggregate expenditures exceed real GDP.

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Definitions:

Standard Deviation

An index quantifying how much data points deviate or scatter from their average.

Mean

The average of a set of numbers, calculated by adding them together and then dividing by the number of numbers.

Value

The degree of importance, worth, or usefulness of something.

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid, for reinvestment in its core business.